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Diversification in Agricultural Production: A Dynamic Model of Optimal Cropping to Manage Soil Erosion

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  • Renan U. Goetz

Abstract

A dynamic economic model of soil erosion is presented where the intensity of use of inputs and the choice of crops allow the farmer to control soil losses. The results show that it is predominately optimal to approach the singular-path/steady-state equilibrium most rapidly by the cultivation of a single crop. At the steady state, however, a mix of crops is cultivated. The promotion of erosion control practices on only high-erosion crops may reduce the long-run soil stock, whereas a tax on the land cultivated with a particular crop is shown to be effective in increasing the long-run soil stock. Copyright 1997, Oxford University Press.

Suggested Citation

  • Renan U. Goetz, 1997. "Diversification in Agricultural Production: A Dynamic Model of Optimal Cropping to Manage Soil Erosion," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(2), pages 341-356.
    • Handle: RePEc:oup:ajagec:v:79:y:1997:i:2:p:341-356
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    File URL: http://hdl.handle.net/10.2307/1244134
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    Cited by:

    1. Nkonya, Ephraim M. & Barkley, Andrew P. & Hamilton, Stephen F. & Bernardo, Daniel J., 1999. "Environmental And Economic Impacts Of Soil Erosion And Fertility Mining In Northern Tanzania," 1999 Annual meeting, August 8-11, Nashville, TN 21623, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Joydeb Sasmal, 2013. "Crop-Diversification for Conservation of Water Resource and Agricultural Growth: A Comparative Dynamic Analysis," South Asian Journal of Macroeconomics and Public Finance, , vol. 2(2), pages 193-214, December.
    3. Gilles Lafforgue & Walid Oueslati, 2007. "Optimal soil management and environmental policy," Economics Bulletin, AccessEcon, vol. 17(3), pages 1-10.
    4. Goetz, Renan-Ulrich & Keusch, Alois, 2005. "Dynamic efficiency of soil erosion and phosphor reduction policies combining economic and biophysical models," Ecological Economics, Elsevier, vol. 52(2), pages 201-218, January.
    5. Carpentier, Alain & Gohin, Alexandre & Sckokai, Paolo & Thomas, Alban, 2015. "Economic modelling of agricultural production: past advances and new challenges," Revue d'Etudes en Agriculture et Environnement, Editions NecPlus, vol. 96(01), pages 131-165, March.
    6. Bond, Craig A. & Farzin, Y. Hossein, 2004. "A Portfolio Of Nutrients: Soil And Sustainability," 2004 Annual meeting, August 1-4, Denver, CO 20035, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Line Hansen & Lars Hansen, 2014. "Can Non-point Phosphorus Emissions from Agriculture be Regulated Efficiently Using Input-Output Taxes?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 58(1), pages 109-125, May.
    8. Doole, Graeme J., 2009. "A Practical Algorithm for Multiple-Phase Control Systems in Agricultural and Natural Resource Economics," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 34(1), pages 1-21, April.
    9. Wilfred Nyangena, 2008. "Social determinants of soil and water conservation in rural Kenya," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 10(6), pages 745-767, December.
    10. Brady, Mark & Hedlund, Katarina & Cong, Rong-Gang & Hemerik, Lia & Hotes, Stefan & Machado, Stephen & Mattsson, Lennart & Schulz, Elke & Thomsen, Ingrid K., 2015. "Valuing Supporting Soil Ecosystem Services in Agriculture: a Natural Capital Approach," MPRA Paper 112303, University Library of Munich, Germany.
    11. Paudel, Krishna P. & Lohr, Luanne, 1998. "Dynamic Analysis Of A Residue Management System In Cotton," 1998 Annual meeting, August 2-5, Salt Lake City, UT 20794, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    12. Bernard Elyakime & Jean-François Bruno, 2000. "Gestion de la lutte contre une érosion de versant avec dégâts sur site public," Économie rurale, Programme National Persée, vol. 257(1), pages 67-77.
    13. Sasmal, Joydeb & Weikard, Hans-Peter, 2013. "Soil Degradation, Policy Intervention and Sustainable Agricultural Growth," Quarterly Journal of International Agriculture, Humboldt-Universitaat zu Berlin, vol. 52(4), pages 1-20, November.
    14. Cong, Rong-Gang & Hedlund, Katarina & Andersson, Hans & Brady, Mark, 2014. "Managing soil natural capital: An effective strategy for mitigating future agricultural risks," MPRA Paper 112155, University Library of Munich, Germany.
    15. Amrita Chatterjee & Arpita Ghose, 2015. "A Dynamic Economic Model of Soil Conservation Involving Genetically Modified Crop," Working Papers id:6623, eSocialSciences.
    16. Hediger, Werner, 2003. "Sustainable farm income in the presence of soil erosion: an agricultural Hartwick rule," Ecological Economics, Elsevier, vol. 45(2), pages 221-236, June.
    17. Paudel, Krishna P. & Lohr, Luanne, 1998. "Dynamic Economic Analysis Of A Residue Management System In Cotton," Faculty Series 16677, University of Georgia, Department of Agricultural and Applied Economics.
    18. Ekbom, Anders & Brown, Gardner M. & Sterner, Thomas, 2009. "Muddy Waters: Soil Erosion and Downstream Externalities," Working Papers in Economics 341, University of Gothenburg, Department of Economics.
    19. Amrita Chatterjee & Arpita Ghose, 2016. "A dynamic economic model of soil conservation and drought tolerance involving genetically modified crops," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 18(1), pages 40-66, October.
    20. Cacho, Oscar J., 1999. "Valuing Agroforestry In The Presence Of Land Degradation," Working Papers 12931, University of New England, School of Economics.
    21. repec:ebl:ecbull:v:17:y:2007:i:3:p:1-10 is not listed on IDEAS
    22. Yirga, Chillot & Hassan, Rashid M., 2010. "Social costs and incentives for optimal control of soil nutrient depletion in the central highlands of Ethiopia," Agricultural Systems, Elsevier, vol. 103(3), pages 153-160, March.
    23. Goetz, Renan-Ulrich & Keusch, Alois, 2002. "The Optimal Intertemporal Management of the Soil and Phosphorus and the Equilibrium in Economic and Biophysical Models," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24783, European Association of Agricultural Economists.
    24. Amrita Chatterjee & Arpita Ghose, 2015. "A Dynamic Economic Model of Soil Conservation Involving Genetically Modified Crop," Working Papers 2015-096, Madras School of Economics,Chennai,India.
    25. Wiebe, Keith D., 2003. "Linking Land Quality, Agricultural Productivity, And Food Security," Agricultural Economic Reports 34073, United States Department of Agriculture, Economic Research Service.

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